Updated 10:39 pm, Thursday, May 22, 2014

Obama's choice will be announced in a White House ceremony on Friday afternoon, with Castro in attendance, when Obama also will present current HUD Secretary Shaun Donovan as his nominee to lead the Office of Management and Budget, the official said.

An impending appointment was disclosed by San Antonio Express-News columnist Brian Chasnoff on Saturday, and subsequent reports revealed HUD the likely destination. The reports set off speculation about Castro's chances as a 2016 vice presidential candidate and discussions on how to replace him as mayor.

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Castro, 39, serving his third term as mayor, has one year remaining in his current term and could another term as mayor, but now he's agreed to accept an offer he's previously rejected - a role on Obama's Cabinet.

If his nomination were approved by the U.S. Senate, he'd join his twin, U.S. Rep. Joaquin Castro, D-San Antonio, in the nation's capital.